Why Commodities Market?
Commodities touch a huge cross-section of investors, including farmers, exporters,
importers, manufacturers, and governments. Given the numerous risks that corporates
face in this well-knit, globalized world, they have begun to increasingly comprehend
the importance of hedging. So much so that risk management through commodity and
currency derivatives plays a key role today to ensure that corporate profitability
does not get derailed in this increasingly volatile environment. Moreover, commodity
futures facilitate efficient price discovery, benefitting all stakeholders and market
participants, particularly farmers.
The boom in global commodity markets was triggered by the ultra-low interest rates
in the US during the first half of the last decade. As a result, a huge wall of
money found its way into multiple markets and asset classes, causing a global multi-asset
boom. Commodity prices moved up sharply during the last decade, driven by significant
speculative activity and huge consumption demand from emerging markets like China.
The result—prices have been beset with excessive volatility, making it difficult
for corporates to manage their exposures effectively. Given the scenario, commodity
futures help companies to hedge their exposures and minimize risk.
We at Anush Shares & Securities provide this service to our clients through a separate
company ALLREACH COMMODITIES PRIVATE LIMITED with membership in Multi Commodities
Exchange as mandated by Indian Regulations.
To reach us call us at +91 44 24616718/ 6721 / 6723
or email us at
customercare@anushshares.com
The Anush Advantage
Seamless, Online trading platform: You can trade from anywhere in India,
sitting in the comfort of your home or office. Moreover, with our huge network of
offices across the country, you can access Anush in your neighbourhood. No matter
where you are, we will always be within your reach.
Personalized services: We offer a suite of custom-made products, after carefully
studying the client profile and the reason for which you are availing our service.
Regardless of whether you are a farmer, manufacturer, investor, speculator, importer
or exporter, we try to understand your needs and offer you the product that would
best suit your requirements.
Cutting-edge technological expertise: Access to the state-of-the-art technological
expertise is a key to the success of any commodities investor. We have now extended
these strengths to our commodities futures business. Our robust, nation-wide connectivity
offers instant, easy, transparent and efficient transactions on a superior trading
platform.
Key Commodities Traded?
Precious metals like Gold and Silver;
Metals including Aluminium, Copper, Iron ore, Lead, Nickel, Tin, Zinc ;
Plantation products like Rubber;
Energy like Crude Oil, Heating Oil;
Carbon credits in the form of CER, CFI;
Oil & Oil Seeds like Crude Palm oil, Refined soya oil, Soya Bean;
Cereals like Barley, Wheat, Maize;
Spices like Cardamom, Coriander;
Fibres like Cotton;
Pulses like Chana;
Other Agricultural commodities like Potato, Almond, Mentha oil, Gaur seeds.
Benefits of participating in Commodities Market
If you are an
investor, commodity market offers the following benefits:
High leverage: You can take a position in a particular commodity by paying
only a fraction of that value as margin. Moreover, the margins in the commodity
futures market are lower than equity futures & options.
Less manipulation: Governed by international price movements, commodity markets
are less prone to rigging or price manipulation.
Diversification:Commodity prices are more a function of supply-demand dynamics,
weather conditions, geo-political tensions and natural disasters. Accordingly, commodities
are an independent asset class, and can prove to be an effective means of diversification
in one’s investment portfolio.
If you are an importer or exporter, you benefit in the following ways:
Hedge against price fluctuations: In today’s highly volatile scenario, wide
fluctuations in prices of import and export products can directly affect your bottom-line.
Commodity futures helps you to procure or sell commodities at a price decided months
before the actual transaction, thereby ironing out any price changes that happen
subsequently.
If you are a producer of a commodity, commodities market can help you in
the following ways:
Lock-in price for your produce: If you are a farmer, there is a possibility
that the price of your produce may come down drastically at the time of harvest.
By taking positions in commodity futures you can effectively lock-in the price at
which you wish to sell your produce at harvest time.
Assured demand: Any glut in the physical market could mean an endless wait
for a buyer. Selling commodity futures contracts can give you assured demand at
the time of harvest.
If you are a large-scale consumer of a product, here is how this market can
help you:
Control your costs: If you are an industrialist, the raw material cost dictates
the final price of your output. Any sudden rise in the raw material cost can compel
you to pass on the hike to your customers, making your products unattractive in
the market. On the other hand, if you are unable to pass on the costs, your margins
and profitability will be hit. Through commodity market, you can lock-in the price
of your raw materials.
Assured demand: Any glut in the physical market could mean an endless wait
for a buyer. Selling commodity futures contracts can give you assured demand at
the time of harvest.